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TMI Blog2021 (5) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... 1911/Hyd/2011 directed against the very lower appellate order imposing sec.271(1)(c ) penalty of Rs. 2,65,97,751/- by invoking sec. 271(1)(c) and qua enhancement of Rs. 7,26,86,351/- u/s 92CA of the Act. The assessee's next appeals ITA 1638/Hyd/2010 and 1795/Hyd/2011 for AYs 2006-07 and 2007-08 dated 25.10.2010 and 2.92011; framed in furtherance to the Dispute Resolution Panel "DRP" Hyderabad's direction dated 24.9.2010 and 9.8.2011; respectively, invoking proceedings u/s 143(3) rws 144C of the Act. Heard both the parties. Case file perused. It transpires during the course of hearing that almost all the issues raised in the instant batch of cases are identical/ inter-connected ones. We thus proceed assessment year wise for the sake of convenience and brevity. A.Y. 2005-06 This first and foremost assessment year 2005-06 involves assessee's and Revenue's quantum appeals ITA 992 and 1082/H/2011 along with former's C.O. 53/Hyd/2011 in latter's case. This is followed by assesee's appeal ITA 1911/H/2011 in penalty proceedings u/s 271(1)(c) of the Act. 2. We advert to the former 3 cases involving quantum assessment. Learned authorized representative at this stage invited our atten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation S.No. Indian taxpayer AY SWD SERVICES Determind Margin Total US RELATED NON US RELATED ALP Adjustments ALP Adjustments ALP Adjustments 1 Sierra Atlantic software Services Pvt.Ltd 2005-06 24.66 65,99,05.168 9.09.24,773 62.48.35.494 8.61.05.760 3.49.69.674 48.19.013 2 Sierra Atlantic software Services Pvt.Ltd 2006-07 19.02 79,12,44,960 9.09.40.085 76.23.64.519 8.76.20.772 2.88.80.441 33.19.313 3 Sierra Atlantic software Services Pvt.Ltd 2007-08 22.47 97.28.79.682 5,39.84.914 90.04.00146 4.99.63,038 7,24 79.536 40.21.876 3.1 The Competent Authorities of India and USA, during their meeting on 15 and 16th January, 2015 at Delhi, agreed upon a framework to resolve pending transfer pricing MAP cases, including the instant case. The framework, inter-alia, required the re-computation of the Operating Revenue and Operating Cost on the basis of the audited financials. Accordingly, it has been agreed upon by the Competent Authorities to resolve the cases as below: 1.) SWD segment Indian CA S.No Indian Taxpayer AY SWD SERVICES US RELATED TRANSACTION Operating Revenue** Operating Cost* Determined Margin Arm's Length Pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer and shall submit the proof of payment of taxes to the Assessing officer who shall then proceed to withdraw the pending appeal, if any, pertaining to subject matter of the resolution under sub-rule (4), which were filed by the Assessing Officer or the Principal Commissioner or Commissioner or any other income-tax authority (12) A copy of the order under sub-rule (10), shall be sent to the Competent Authority in India and to the assessee. (13) The amount of tax, interest or penalty already determined shall be adjusted in accordance with the resolution arrived at under sub-rule (4) and in the manner provided under the Act or the rules made thereunder to the extent that such manner is not contrary to the resolution arrived at." 6. It may please be noted that the effect to the MAP resolution needs to be granted by the Assessing Officer by considering the original demand and the demand that would be outstanding after giving effect to the MAP resolution. Ordinarily, there would not be any requirement to seek further assistance from the Transfer Pricing Officer. As per rule 44G(10), time of one month from the end of the month in which this communication is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % forming subject matter of the ALP in these assessment years. Coming to the remaining international transactions with associated enterprises in other jurisdictions i.e. Singapore etc., the Revenue fails to dispute that even the Transfer Pricing Officer has not drawn any distinction qua the "ALP" in all the substantive grounds raised herein. We thus hold that the "MAP" margin of 15.49%, 15.34% and 15.76% deserves to be applied qua the remaining portion of non-USA based international transactions as well. Consequently, the assessee's appeals ITA 992/H/11 raising substantive grounds no.1 to 11, Revenue's cross appeal ITA 1082/H/11 canvassing the sole issue of proportionate operating cost figures qua transfer pricing mechanism of Rs. 52,92,38,786/- and former's cross objection 53/H/11 therein; are dismissed as rendered infructuous. Same is the outcome in assessee's remaining appeals ITA 1638/H/10 and 1795/H/11 for latter two raising the very issue of ALP adjustment(s) involving varying sum(s). These latter two appeals are also dismissed as rendered infructuous/ dismissed as withdrawn in above terms. 4. We are now left with assessee's 12th to 14th grounds in ITA 992/Hyd/2011 challengi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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